six sigma for managers. 2 www.explorehr.org contents : six sigma : an overviewsix sigma : an...
Post on 02-Jan-2016
242 views
Embed Size (px)
TRANSCRIPT
Six Sigma for Managers
*www.exploreHR.org
Contents :Six Sigma : An OverviewWhat is Six Sigma?Why Six Sigma?Six Sigma Phases : Define, Measure, Analyze, Improve and ControlTools and Key Roles for Six Sigma
*www.exploreHR.org
Why Six Sigma?
*www.exploreHR.org
What is Sigma ?Sigma A term used in statistics to represent standard deviation, an indicator of the degree of variation in a set of a process
*www.exploreHR.org
What is Six Sigma?Six SigmaA statistical concept that measures a process in terms of defects at the six sigma level, there 3.4 defects per million opportunitiesA philosophy and a goal : as perfect as practically possibleA methodology and a symbol of quality
*www.exploreHR.org
Sigma Level
Sigma Level (Process Capability)Defects per Million Opportunities2308,537366,80746,210523363.4
*www.exploreHR.org
Sigma LevelSix Sigma = 99,9997%
*www.exploreHR.org
Sigma LevelEvery hour the postal service would lose 20,000 pieces of mailEvery day our drinking water would be unsafe for almost 15 minutesEvery week there would be 5,000 surgical operations that go wrong in some wayEvery month we would be without electricity for almost seven hoursWhy not Four Sigma or 99.379% ?
*www.exploreHR.org
Why Six Sigma?MoneyCustomer SatisfactionGrowthQualityCompetitiveAdvantageEmployee Pride
*www.exploreHR.org
At GE, Six Sigma added more than $ 2 billion to the bottom line in 2000 aloneMotorola saved more than $ 15 billion in the first 10 years of its Six Sigma effortAlliedSignal reports saving $ 1.5 billion through Six Sigma.Why Six Sigma?
*www.exploreHR.org
Why Six Sigma?Six Sigma is about practices that help you eliminate defects and always deliver products and services that meet customer specifications
*www.exploreHR.org
Cost of Poor QualityWhat is cost of scrap?
What is cost of rework?
What is cost of excessive cycle times and delays?
*www.exploreHR.org
Cost of Poor QualityWhat is cost of business lost because customers are dissatisfied with your products or services?What is cost of opportunities lost because you didnt have time or the resources to take advantage of them?
*www.exploreHR.org
Critical-to-Quality (CTQ)Elements of a process that significantly affect the output of that process. Identifying these elements is figuring out how to make improvements that can dramatically reduce costs and enhance quality.
*www.exploreHR.org
Six Sigma Phases
*www.exploreHR.org
DefineMeasureAnalyzeImproveControlSix Sigma PhasesD M A I C
*www.exploreHR.org
DefineMeasureAnalyzeSix Sigma PhasesDefine the project goals and customer (internal and external) deliverables
Measure the process to determine current performanceAnalyze and determine the root cause(s) of the defects
*www.exploreHR.org
ImproveControlSix Sigma PhasesControl future process performanceImprove the process by eliminating defects
*www.exploreHR.org
Six Sigma PhasesDefineDefine Customers and Requirements (CTQs)Develop Problem Statement, Goals and BenefitsIdentify Champion, Process Owner and TeamDefine ResourcesEvaluate Key Organizational SupportDevelop Project Plan and MilestonesDevelop High Level Process Map
*www.exploreHR.org
Six Sigma PhasesMeasureDefine Defect, Opportunity, Unit and MetricsDetailed Process Map of Appropriate AreasDevelop Data Collection PlanValidate the Measurement SystemCollect the DataBegin Developing Y=f(x) RelationshipDetermine Process Capability and Sigma Baseline
*www.exploreHR.org
Six Sigma PhasesAnalyzeDefine Performance ObjectivesIdentify Value/Non-Value Added Process StepsIdentify Sources of VariationDetermine Root Cause(s)Determine Vital Few x's, Y=f(x) Relationship
*www.exploreHR.org
Six Sigma PhasesImprovePerform Design of ExperimentsDevelop Potential SolutionsDefine Operating Tolerances of Potential SystemAssess Failure Modes of Potential SolutionsValidate Potential Improvement by Pilot StudiesCorrect/Re-Evaluate Potential Solution
*www.exploreHR.org
Six Sigma PhasesControlDefine and Validate Monitoring and Control SystemDevelop Standards and ProceduresImplement Statistical Process ControlDetermine Process CapabilityDevelop Transfer Plan, Handoff to Process OwnerVerify Benefits, Cost Savings/Avoidance, Profit GrowthClose Project, Finalize DocumentationCommunicate to Business, Celebrate
*www.exploreHR.org
DefineMeasureAnalyzeImproveControlDeliverables :Fully trained team is formed, supported, and committed to work on improvement project. Team charter developed, customers identified and high impact characteristics (CTQs) defined, business process mapped.
*www.exploreHR.org
Checkpoints for ReadinessTeam Readiness :Team is sponsored by a champion or business leader.Team formed and team leaders assigned. Improvement team members fully trained on Six Sigma and DMAIC.
DefineMeasureAnalyzeImproveControlTeam Charter :Completed project management charter, including business case, problem and goal statements, project scope, milestones, roles and responsibilities, communication plan.
*www.exploreHR.org
DefineMeasureAnalyzeImproveControlCheckpoints for ReadinessCustomersCustomer(s) identified and segmented according to their different needs and requirements.Data collected and displayed to better understand customer(s) critical needs and requirements.Business Process MappingCompleted, verified, and validated high-level 'as is' (not 'should be' or 'could be') business process map.Completed SIPOC representation, describing the Suppliers, Inputs, Process, Outputs, and Customers.
*www.exploreHR.org
DefineMeasureAnalyzeImproveControlDeliverables :Key measures identified, data collection planned and executed, process variation displayed and communicated, performance baselined, sigma level calculated.
*www.exploreHR.org
DefineMeasureAnalyzeImproveControlCheckpoints for ReadinessKey Measures IdentifiedKey measures identified and agreed upon.High impact defects defined and identified in the business process.
Data Collection Planned and ExecutedSolid data collection plan established that includes measurement systems analysis.Data collected on key measures that were identified.
*www.exploreHR.org
DefineMeasureAnalyzeImproveControlCheckpoints for ReadinessProcess Variation Displayed/CommunicatedProcess variation components displayed/communicated using suitable charts, graphs, plots.Long term and short term variability accounted for. Performance Baseline/Sigma CalculationMeasure baseline process performance (capability, yield, sigma level).
*www.exploreHR.org
DefineMeasureAnalyzeImproveControlDeliverables :Data and process analysis, root cause analysis, quantifying the gap/opportunity.
*www.exploreHR.org
DefineMeasureAnalyzeImproveControlCheckpoints for ReadinessData and Process AnalysisIdentify gaps between current performance and the goal performance. Root Cause AnalysisGenerate list of possible causes (sources of variation).Segment and stratify possible causes (sources of variation).Prioritize list of vital few causes (key sources of variation).Verify and quantify the root causes of variation.
*www.exploreHR.org
DefineMeasureAnalyzeImproveControlCheckpoints for ReadinessQuantifying the Gap/OpportunityDetermine the performance gap.Display and communicate the gap/opportunity in financial terms.
*www.exploreHR.org
DefineMeasureAnalyzeImproveControlDeliverables :Generate (and test) possible solutions, select the best solutions, design implementation plan.
*www.exploreHR.org
DefineMeasureAnalyzeImproveControlCheckpoints for ReadinessGenerating (and Testing) Possible SolutionsPossible solutions generated and tested.
*www.exploreHR.org
DefineMeasureAnalyzeImproveControlCheckpoints for ReadinessSelecting The Best Solution(s)Optimal solution selected based on testing and analysis.New and improved process ('should be') maps developed.Cost/benefit analysis of optimal solution(s).Small-scale pilot for proposed improvement(s). Pilot data collected and analyzed.Improved process ('should be') maps modified based on pilot data and analysis.Project impact on utilizing the best solution(s).
*www.exploreHR.org
DefineMeasureAnalyzeImproveControlCheckpoints for ReadinessDesigning Implementation PlanSolution implementation plan established, including schedule/work breakdown structure, resources, risk management plan, cost/budget, and control plan.Contingency plan established.
*www.exploreHR.org
DefineMeasureAnalyzeImproveControlDeliverables :Documented and implemented monitoring plan, standardized process, documented procedures, response plan established and deployed, transfer of ownership (project closure).
*www.exploreHR.org
DefineMeasureAnalyzeImproveControlCheckpoints for ReadinessMonitoring PlanControl plan in place for sustaining improvements (short and long-term). Process StandardizationNew process steps, standards, and documentation are ingrained into normal operations.
Documented ProceduresOperating procedures are consistent.Knowledge gained on process is shared and institutionalized.
*www.exploreHR.org
DefineMeasureAnalyzeImproveControlCheckpoints for ReadinessResponse PlanResponse plans established, understood, and deployed. Transfer of Ownership (Project Closure)Transfer ownership and knowledge to process owner and process team tasked with the responsibilities.
*www.exploreHR.org
Tools and Roles for Six Sigma
*www.exploreHR.org
Creating flowcharts of the step in a process operations, decision points, delays, movements, handoffs, rework, loops, and controls or inspections. A process map is illustrated description of how a process work.To